ORSTED A/S First quarter 2022
Interim ESG performance report
Contents
1. Introduction
4. Environment
1.1 CFO's review
1.2 ESG target overview
1.3 Overview by business unit
1.4 Overview by country
3 4.1 Green share of energy generation 13
4 4.2 Greenhouse gas (GHG) emissions 14
5 4.3 Greenhouse gas (GHG) intensity 15
6 4.4 Energy consumption 16
2. EU taxonomy KPIs
2.1 Taxonomy-eligible KPIs
3. Business drivers
7
3.1 Renewable capacity 8
3.2 Generation capacity 9
3.3 Energy generation 10
3.4 Energy business drivers 11
3.5 Energy sales 12
5. Social
5.1 Human capital 17
5.2 Safety 18
6. Governance
6.1 Supplier due diligenceAppendix Accounting policies
19
20
Interim financial report, Q1 2022
1.1 CFO's review
Our green share of heat and pow-er generation increased to 92 % in Q1 2022
- In Q1 2022, we commissioned the onshore wind farm Haystack in the US
- Our green share of energy increased by 5 percentage points to 92 %
- Scope 1 and 2 greenhouse gas intensity decreased by 19 % to 48 g CO2e/kWh compared to Q1 2021
- Scope 3 emissions decreased by 30 % compared to Q1 2021
- EU taxonomy-eligible revenue was 68 %, EBITDA 87 %, and CAPEX 98 %.
Renewable energy capacity
In March 2022, we commissioned the 298 MW onshore wind farm Haystack in Nebraska, the US. The new wind farm expands our geo-graphic footprint into the Midwest.
This brings our installed renewable capacity up to 13.3 GW at the end of Q1 2022.
Heat and power generation
Total heat and power generation increased by 6 % to 13.1 TWh, driven by a 94 % increase in onshore wind and solar generation and a 12 % decline in thermal generation.
Offshore power generation decreased by 1 % compared to Q1 2021. The decrease was due to the 50 % farm-down of Borssele 1 & 2 in Q2 2021, partly offset by increased generation due to higher wind speeds and the ramp-up effect from Hornsea 2 in Q1 2022.
Onshore wind power generation increased by 82 % compared to Q1 2021 due to additional generation from our new onshore sites in the US and Ireland.
Solar PV power generation increased by 502 % to 0.3 TWh due to generation from our two new solar PV assets, Permian Energy Center
I'm committed to continuing our work as a frontrunner in developing and operating cost-effective green energy
and Muscle Shoals, which were commissioned in solutions to drive the globalQ2 and Q3 2021, respectively.
Thermal power generation was 5 % lower in Q1 2022 compared to Q1 2021, primarily due to lower combined heat and power generation driven by lower heat demand.
Heat generation was 17 % lower in Q1 2022 relative to Q1 2021 due to warmer weather in Q1 2022.
Green key performance indicators
Our green share of energy generation increased by 5 percentage points to 92 % in Q1 2022 com-pared to Q1 2021. The increase was driven by the increased onshore wind and solar PV based generation, partly offset by the reduction in offshore power generation and thermal heat and power generation.
Scope 1 and 2 greenhouse gas intensity de-creased by 19 % to 48 g CO2e/kWh in Q1 2022 due to a reduction in the use of both natural gas and coal at our power stations, combined with an increase in total energy generation.
Scope 3 emissions decreased by 30 % in Q1 2022, mainly due to a 31 % reduction in natural gas sales.
energy transformation from fossil fuels to renewables.
EU sustainability taxonomy
Our taxonomy-eligible share of revenue de-creased by 6 percentage points to 68 % in Q1 2022. The reduction was primarily due to in-creased revenue from our gas sales activities, driven by the extraordinary high gas prices in Q1 2022.
Our taxonomy-eligible share of EBITDA de-creased by 9 percentage points to 87 % in Q1 2022 compared to Q1 2021. This was due to in-creased EBITDA from our non-eligible gas sales, primarily due to a temporary positive impact from the high gas prices through a revaluation of our gas at storage.
Our taxonomy-eligible share of CAPEX in Q1 2022 was maintained at 98 % compared to Q1 2021.
Concluding remark
I am very proud and humbled to succeed Mari-anne Wiinholt as CFO of Ørsted. I am committedto continuing our work as a frontrunner in developing and operating cost-effective green energy solutions to drive the global energy transformation from fossil fuels to renewables.
At this point in time, we can see huge interna-tional efforts to consolidate ESG standards and further integrate ESG with financial re-porting. We will continue to take an active part in this development. We always strive to apply new ESG reporting requirements, such as the EU taxonomy and the upcoming EU Corporate Sustainability Reporting Directive (CSRD), in the best possible way to support our business and inform our stakeholders about our ESG performance.
Daniel Lerup CFO
1.2 ESG target overview
NoteIndicator
Unit
TargetQ1 2022
Q1 2021
Δ 2021
3.1 Installed renewable capacity 12,980
Strategic targets
2.9 (2040)1 Top 10 % (ongoing)2 Total recordable injury rate (TRIR) Per million hours worked 2.5 (2025) | 13,278 7,551 3,649 2,078 92 3.7 3.0 48 100 n.a. 1.3 | 11,318 7,572 1,668 2,078 87 5.3 4.4 59 130 n.a. 3.0 | 17 % (0 %) 119 % 0 % 5 %p (30 %) (31 %) (19 %) (23 %) - (57 %) | 12,980 7,551 3,351 2,078 90 18.2 14.2 58 165 77 3.0 |
Additional sustainability targets
Electric vehicles in the company vehicle fleet Total blade waste directed to landfill Gender with lowest representation (female) Thousand tonnes % % % % 0 (from Q2 2023)3 100 (ongoing) 100 (2025) 0 (ongoing) 40 (2030)4 | 100 241 100 n.a. n.a. n.a. | 100 263 100 n.a. n.a. n.a. | 0 %p (8 %) 0 %p - - - | 100 803 100 41 0 31 |
3.1 - Installed offshore capacity 7,551
3.1 - Installed onshore capacity 3,351
3.1 - Installed other (incl. PtX) capacity 2,078
4.1 Green share of energy generation 90
4.2 Greenhouse gas emissions (scope 3) 18.2
4.2 Greenhouse gas emissions (scope 3: use of sold 14.2
4.3 Greenhouse gas intensity (scope 1 and 2) 58
4.3 Greenhouse gas intensity (scope 1, 2, and 3) 165
n.a. Employee satisfaction 77
5.2 Total recordable injury rate (TRIR) 3.0
4.4 Certified sustainable wooden biomass sourced 100
4.4 Coal consumption 803
4.4 Own power consumption covered by renewable ener 100
n.a. n.a. n.a.
Electric vehicles in the company vehicle fleet 41
Total blade waste directed to landfill 0
Gender with lowest representation (female) 31
1 Our GHG intensity (scope 1, 2, and 3) target excludes scope 3 emissions from use of sold products (natural gas sales).
2 Our target is to have an employee satisfaction survey result in the top ten percentile every year compared to an external benchmark group.
3 Our target is to stop using coal in 2023. Our plan is to close the last unit (Esbjerg Power Station) at the end of Q1 2023.
4 Our new 2030 gender diversity ambition will be measured and assessed against three scopes: (1) senior directors and above, (2) people managers, and (3) all employees.
SBTi approved net-zero greenhouse gas emissions target for 2040
Net-positive biodiversity impact target
Our 2040 net-zero greenhouse gas emissions target is comprised of the above GHG reduc-tion targets. We will neutralise the residual emissions through certified carbon-removal projects.
Our target for biodiversity is that all newly commissioned projects must have a net-positive biodiversity impact no later than in 2030.
1.3 Overview by business unit
NoteIndicator Revenue EBITDAUnit DKK million DKK million
Offshore 19,806 5,919
Onshore 690 850
Bioenergy & Other 14,474 2,514
Other activities/ eliminations
Q1 2022 33,7629,429
Q1 2021 18,944 4,863
Δ 2021
(1,208))
78 % 77,673
146
94 % 24,296
3.1 Installed renewable capacity
3.1 - Offshore wind power
3.1 - Onshore wind power
3.1 - Solar PV power
3.1 - Battery storage
3.1 - Thermal biomass-based heat
3.1 - Biogas power (Renescience)
3.1 Decided (FID'ed) renewable capacity
3.1 Awarded and contracted renewable capacity
3.1 Firm capacity (installed, FID'ed, and awarded/contracted capacity)MW
7,551
3,649
2,078
-13,278
11,318
17 % 12,980
MW MW
7,551 - - - - - 3,516 8,305 19,372
- 2,952
- - - 21 2,054 3 2 - 2,080
- - - - - - - - - - - - - - 0 7 - - - 2,235 0
7,551
7,572 1,658
(0 %) 7,551
2,952
78 % 2,654
MW MW MW MW MW MW MW MW MW
657 40 - - 1,055 - 4,704
657
10 6470 % 657
61
21
190 % 61
2,054
2,054 0 % 2,054
34,5738,30526,156
3 4,588 4,996 20,902
0 %
3
(0 %) 4,725
66 % 8,435
25 % 26,140
3.2 Power generation capacity
3.2 Heat generation capacity, thermal
4,234 -
3,594 -
2,543
10,371
8,884
17 % 9,809
3,353
3,353
3,487
(4 %) 3,353
3.3 Power generation
3.3 Heat generation
GWh GWh %
4,502 -
3,203 -
2,138
9,843
8,455
16 % 29,050
3,243
3,243
3,890
(17 %) 7,907
4.1 Green share of energy generation
100
100
81
92
87
5 %p 90
4.2 Greenhouse gas emissions (scope 1 and 2)
4.2 Greenhouse gas emissions (scope 3)
4.2 Greenhouse gas emissions (scope 3: use of sold products)1
4.3 Greenhouse gas intensity (scope 1 and 2)
4.3 Greenhouse gas intensity (scope 1, 2, and 3)2
Thousand tonnes CO2e Thousand tonnes CO2e Thousand tonnes CO2e
6
0
625
631
728
(13 %) 2,143
40 -
136 -
3,505
3,688
5,263
(30 %) 18,179
3,007
3,007
4,386
(31 %) 14,206
5.1 Number of employees (as of 31 December)
5.2 Total recordable injury rate (TRIR)
g CO2e/kWh
g CO2e/kWh
FTEs
Injuries per million hours worked
3,551
1.3
10
1
276
43
1.6
0
209
954
116
3.3
7,016
100
48
1.3
6,311
130
3.0
59
(19 %) (23 %)
11 % (57 %)
58 165 6,836 3.0
1 Scope 3 emissions from wholesale buying and selling of natural gas.
2
Excludes scope 3 emissions from use of sold products (natural gas sales).
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Ørsted A/S published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 06:11:06 UTC.
